AIB Group (A5G) H1 2025 earnings summary

Executive summary

• Profit after tax reached €927 million for H1 2025, with a return on tangible equity (ROTE) of 21.4% and a CET1 ratio of 16.4%.

• New lending grew 9% to €6.9 billion, with 36% classified as green or transition finance.

• Interim dividend of €263 million resumed for the first time in 17 years; payout policy targets 40–60% of earnings.

• The Irish State fully exited the share register in June 2025, returning the group to full private ownership and €20.5 billion to the State.

• Net interest income was €1.9 billion, down 10% year-over-year, with net interest margin at 2.78%.

Financial highlights

• Total income for H1 2025 was €2.2 billion, down 10% year-over-year, mainly due to a 10% reduction in net interest income.

• Operating expenses rose 3% to €979 million, with a cost/income ratio of 44%.

• Gross loans increased 1% to €71.6 billion; customer accounts grew 2% to €112.5 billion.

• Asset quality remains strong with ECL coverage at 1.9% and NPE ratio stable at 2.8%.

• Net credit impairment charge was €85 million, with a cost of risk of 24 bps.

Outlook and guidance

• Upgraded ROTE guidance for 2025 to above 20%; medium-term target above 15%.

• Net interest income for 2025 expected to exceed €3.6 billion; other income around €750 million.

• Costs projected to rise by 3% for FY 2025; cost/income ratio to remain below 50%.

• CET1 ratio to be maintained above 14% medium term; cost of risk expected within 20–30 bps.

• Loan book CAGR of 5% targeted through 2027; customer loans and accounts both expected to grow by about 3% in 2025.